Interesting article about Oil

wanghong

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, ^& J. o# K( x$ _' g2 P# x5 p! kBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
: w4 D+ ~* ^+ z8 k0 d5 ]" {' xthese oil producer will go bankrupt or out of the business even if
( J% P  O5 |6 ], S; F( ]crude prices improves. This implies also to good names such as Shell,
9 Z/ y. o- z6 _9 A0 tEXXON, BG, BP, Cheveron ....xyz.. oils
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. M0 g7 r( N/ G$ eRecently OPEC reduced crude oil production twice over just a few
: u8 c, O; p4 F+ Q2 W- J- Emonths. There are three wars going on in Gaza, Iraq and Afghandistan.
" k, Y* q4 a4 h  I) m+ B5 TA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
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$ H( q# |8 ~; j; m8 b; `There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
- ^/ Q! y# s0 i  e" M, ?Arabia.
+ Y  E+ S2 q0 V- S
. e6 z# F8 j! g7 X+ k% E
2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
) t9 t$ c' I2 P7 z$ Vbeing used to double their output.


4. Production of bio-fuels is beginning to reach critical mass. Bio
, {# K$ |. U8 i  {5 C1 ofuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
0 a" f1 i/ K4 @" ]9 E% Kracing to produce bio fuels.
+ J. D+ g+ I, A4 U2 D; f
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: ^+ y/ j/ ?2 P) Y% S5. Virtually every restaurant in the US and all food processing plants
* v0 \8 ^. T4 |4 q! }# @" Tare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
. n; H# |8 y7 J% _to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
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6. There are 99 nuclear reactors in various stages of planning and
1 G, m8 f0 V( Y! @/ q/ Gconstruction around the world at this time. Several hundred more are
2 q) z, B% j( S/ s, ~' O/ g  q# ^expected to be built in the future. Much of the energy they produce
will replace oil.

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  e; G) H6 K5 D, y# O# q3 |7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
+ j1 X" ~3 ?2 ^& K: q7 b- cwith new more fuel efficient equipment. Airlines and railway companies
9 G. _8 _& V" M" p3 e& _" `are experiencing 20% to 25% better fuel econony with the new
, F' [0 o; X. ?+ V9 D: w2 A  Yequipment.


Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.

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6 q* r: z0 q% T% z4 i+ G; ]8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
) M9 }: i) N& h4 }6 I, ]. R6 Koil.

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9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.


$ u6 Y4 [* b+ ?5 e10. Solar, wind and ocean energy is displacing oil as an energy
+ e+ y) K4 `" ]( jsource. Three new wind turbines are being erected every day in the US.

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Each of the above by itself will not make a large difference in the
( J6 ?# e! }+ ^; f$ xprice of crude oil but the sum of all of them together is world
) {; \: ]" I, w- L) uchanging. The important thing is that OPEC no longer has the ability
to control oil prices.


With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
0 w: K3 w. w) u) D/ K, V2 _3 c8 e2009 ... FYI-Only